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The first quarter of 2022 was marked by an extremely rapid growth of Dubai real estate market, expressed, among other things, in such achievements as record transaction volumes since 2010 or the sale of the most expensive villa in the history of the city for 76.2 million dollars.
Due to this growth, the preservation of the positive momentum of market development in 2021, some of the consequences of the current international situation, Dubai has experienced a significant increase in wealthy foreign investors and buyers from different parts of the world.
Someone fled from sanctions, someone from military actions, someone is trying to secure their funds by watching the development of the global economic crisis, someone sees the emirate as the best place for business in the crypto sector.
Content:
- Europeans are becoming the main source of demand in the real estate market
- Economic prerequisites for popularity
- Investors from Asia and the Middle East
Europeans are becoming the main source of demand in the real estate market
European buyers not only retained their dominant positions in the market, but also increased their presence. Special attention should be paid to buyers from the following countries:
- Great Britain;
- Italy;
- France;
- Germany.
The British took the first place, the Italians close TOP-3
The British took first place in the top foreign buyers of Dubai by nationality. The Italians closed the top three. The French took seventh place.
Driven by fear of geopolitical uncertainty in Europe and serious crisis signals in the regional and global economy, wealthy Europeans are becoming necessary to look for new «quiet bays» for savings.
Throughout 2021, the UAE in general and Dubai in particular have proven themselves over and over again as one of the safest places to invest. In 2022, this development paid off with the faith of foreigners in the local economy: in the financial sector, in the IT sector and, of course, in the local real estate market.
Economic prerequisites for popularity
Returning to record sales volumes, about 26,000 real estate transactions were made in the first quarter. A little more than 20,000 transactions accounted for the residential real estate market, which provided more than $15 billion.
In the first two months of 2022, the emirate recorded a sharp increase in the business activity index, a massive return of foreign business, and the growth of new small and medium-sized enterprises.
Under the high pressure of demand from foreign buyers, the supply in the primary market has significantly decreased. There are fewer goods, it has become more expensive, often unjustifiably, the delivery of new facilities should not be expected earlier than 2023. In view of all this, the attention of buyers began to flow into the secondary market.
More investors began to pay attention not only to villas, but also to apartments. Properties of more modest price categories, rather than exclusively premium, began to receive more and more purchase offers.
According to official data, in the first quarter of 2022, real estate sales in the secondary real estate market accounted for 58% of all sales on the market. This is a noticeable break of the previously established trend.
The authorities of Dubai and the UAE as a whole have also carried out some reforms in the field of labor legislation to make the emirates more attractive to foreign specialists.
Businesses can open their doors without intermediaries outside of special economic zones, including in District 2020 (approx. the venue of Expo-2020, now being redeveloped into a business district).
The possibilities of obtaining resident visas for different categories of foreigners, from ordinary workers to the wealthiest investors of various directions, have been redesigned and expanded.
Promises of high returns on investments are growing, and profits themselves are increasingly migrating to new suburban areas of Dubai.
Unexpected demand from Canada
The beginning of this year also recorded an unexpectedly large increase in buyers and investors from North America. The growth in the number of Canadian citizens has become especially noticeable. During the year, from the first quarter of 2021 to the same period of 2022, the number of buyers of this nationality increased by 116%.
Investors from Asia and the Middle East
It is impossible to forget about the traditionally high popularity of Dubai among investors from India and Pakistan. The former took second place in the top by nationality, after the British, and investors from Pakistan took eighth place.
TOP-10 also included wealthy buyers from Lebanon, investors from China also gained a foothold in the top.
